TaxTMI 
TaxTMI 
2002 (2) TMI 1073
X X X X Extracts X X X X
X X X X Extracts X X X X
....t question required to be decided in the present appeal is as to whether carbon tubes and sleeves are eligible modvatable inputs in terms of the provisions of Rule 57A. 2. The appellants are engaged in the manufacture of various tungsten carbide products. The use of the inputs in question, as detailed in the memo of appeal is as under :- "(iv) The appellant states that the said input a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th the metal powder at high temperature (more than 1000ºC) cracks to form soot (carbon) CH4 = C + 2H2. This carbon reacts with the metal to form Tungsten Carbide. If no carbon is mixed initially with the metal powder than this reaction can introduce about 3% of carbon in the tungsten. The requirement is 6.13%. Hence, normal practice is to add carbon black to the metal powder. If carbon tube....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f no carbon tubes are used, then the product will have less than adequate carbon. In such a case a very brittle phase called Eta-phase (CO3W3C) forms. Presence of this Eta-phase is very dangerous for the product as it breaks very easily. Hence, the product gets rejected and cannot be supplied to the market." 3. From the above the appellant contends that the carbon tubes and sleeves are ess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....have also challenged the impugned order on the ground of limitation inasmuch as the Modvat credit was availed after filing a declaration and the show cause notice was issued after a gap of about two years alleging that declaration was filed with a deliberate intention to avail the Modvat credit wrongly. 4. After hearing the ld. JDR appearing for the Revenue I find that the issue is no more r....